MANGALORE UNIVERSITY BBM - I SEMESTER BM 101: … · 1 MANGALORE UNIVERSITY BBM - I SEMESTER BM...

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MANGALORE UNIVERSITY

BBM - I SEMESTER

BM 101: PRINCIPLES OF ECONOMICS

UNIT –I

ORIGIN OF ECONOMICS

• Meaning of Economics- origin – Briefly point out wealth and welfare definition.

• Scarcity definition-main points- criticisms.

• Growth oriented definition.

• Micro economics –meaning- nature- scope in brief.

• Macro economics –meaning- nature-scope in brief.

• Basic problems - PPC analysis-schedule- Shift of PPC - uses.

• Price mechanism – meaning – importance.

• Economic laws - meaning – features.

• Assumptions –meaning.

• Consumer’s sovereignty – meaning - limitations.

• Wants- meaning- features- classifications.

• Goods-meaning-Types.

• Utility – meaning of marginal and total utility – Types and forms of utility.

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UNIT –II

CONSUMER BEHAVIOUR

• A brief introduction on consumers’ satisfaction with reference to management

behavior.

• Law of Diminishing Marginal Utility –meaning –the law- schedule –MU and TU

curve- assumptions – exceptions-importance.

• Law of equi -marginal utility.

• Indifference curve analysis- Indifference schedule-curve-indifference map-

properties-MRS-meaning –table.

• Budget line – meaning –schedule

• Consumers’ equilibrium –budget line and indifference curve.

UNIT –III

DEMAND

• A brief introduction on the significance of market forces.

• Demand-meaning-determining factors-law of demand-demand schedule-curve-

assumptions- causes for downward sloping curve –exceptions.

• Changes in demand and changes in quantity demand- meaning- graphical

illustration- difference between increases in demand, decreases in demand and

expansion in demand and contraction in demand.

• Elasticity of demand- meaning- types-Price elasticity- degrees of price elasticity-

measurement of price elasticity-.

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• Income elasticity- meaning -formula of Income elasticity- types.

• Cross elasticity- meaning – formula of cross elasticity- types.

• Significance of elasticity of demand.

• Consumers’ surplus – meaning- measurement-graphical illustration- importance

of consumers’ surplus.

• Supply- meaning- stock and supply.

• Law of supply- supply schedule- curve –assumption - exceptions- backward

bending supply curve.

UNIT –IV

PRODUCTION

• Meaning of Production – Factors of production.

• Land-meaning- features of land.

• Labour-meaning –features.

• Division of labour- types of division of labour-simple - complex-territorial –

advantages and disadvantages of division of labour.

• Mobility of labour – meaning- Types of mobility.

• Efficiency of labour- meaning – Determining factors.

• Input markets- factors determining the demand for input.

• Marginal Productivity Theory- graphical illustration.

• Capital- meaning- types of capital.

• Capital formation - meaning – stages - importance.

• Organization- meaning.

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• Functions of an entrepreneur- attributes or qualities of an entrepreneur.

********

(Sd)

Dr. Vigneshwara V, Dept of economics, Vivekananda College , Puttur.

Prof . Aruna Kamath, Dept of economics, SDM college of management ,Mangalore.

Dr. Arun Prakash , Dept of economics, Vivekananda College , Puttur.

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BBM - I SEMESTER

BM 101: PRINCIPLES OF ECONOMICS

Model Question Papers

UNIT –I

ORIGIN OF ECONOMICS

(15 Marks)

1. Illustrate the scarcity definition. What are its limitations?

2. Explain the basic problems of an economy with Production Possibility Curve.

3. Explain the economizing problem of an economy with the help of Production

Possibility Curve.

4. Explain the basic problems of an economy.

5. What is meant by consumer’s sovereignty? Explain its limitations.

(05 Marks)

1. Write a note on growth definition.

2. Write a note on PPC.

3. Explain the characteristics of human wants.

4. Classify human want.

5. Explain various types of goods.

6. Define utility. What are various types of utility? Explain.

7. What do you mean by consumers sovereignty. Bring out its limitations.

8. “Consumers’ Sovereignty is a myth” – justify.

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9. Write a note on scarcity definition.

10. Distinguish between micro and macro economics.

11. What are economic laws? Bring out its nature.

UNIT –II

CONSUMER BEHAVIOUR

(15 Marks)

1. Explain the law of diminishing marginal utility. What are its exceptions?

2. Explain the Law of Equi-Marginal Utility.

3. Define an Indifference Curve. Explain the properties of an indifference curve.

4. Explain the consumers’ equilibrium with the help of Indifference curve.

(05 Marks)

1. Write a note on Budget Line.

2. What are the properties of an indifference curve.

3. Write a note on Marginal Rate of Substitution.

4. State the Law of Equi-Marginal Utility.

5. What are the exceptions of law of diminishing marginal utility

UNIT –III

DEMAND

(15 Marks)

1. Explain the law of demand with the diagramme.

2. Explain the law of demand. Why does demand curve slopes downwards.

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3. What is demand? Explain the determinants of demand.

4. Distinguish between changes in demand and changes in quantity demand.

5. What is meant by elasticity of demand ? Explain various types of elasticity of

demand.

6. What is meant by price elasticity? Explain various degrees of price elasticity

of demand.

7. What is meant by price elasticity? How it can be measured?

(05 Marks)

1. Explain various types of demand.

2. Explain the law of demand.

3. State the exceptions for the law of demand.

4. Explain the law of supply.

5. Explain the concept of consumer’s surplus.

6. Explain the degrees of price elasticity.

7. Briefly point out the significance of the price elasticity of demand.

UNIT –IV

PRODUCTION

(15 Marks)

1. What is division of labour ? Explain the advantages and disadvantages of

division of labour.

2. What do you mean by efficiency of labour? Explain the factors influencing on

efficiency of labour.

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3. Critically examine the Marginal Productivity Theory of distribution.

4. Explain the functions and attributes of an entrepreneur.

5. What do you mean by mobility of labour? Explain the factors influencing on

mobility of labour.

(05 Marks)

1. Explain the features of land.

2. Explain the features of labour.

3. Explain the various types of division of labour.

4. What are the advantages of division of labour.

5. What are the disadvantages of division of labour.

6. Write a note on capital

7. Write a note on capital formation.

8. Explain the different stages of capital formation.

9. What are the functions of an entrepreneur?

10. Explain the attributes of an entrepreneur.

********

(Sd)

Dr. Vigneshwara V, Dept of economics, Vivekananda College , Puttur.

Prof . Aruna Kamath, Dept of economics, SDM college of management ,Mangalore.

Dr. Arun Prakash , Dept of economics, Vivekananda College , Puttur.

******

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I SEMESTER BBM

BM102: PRINCIPLES OF MANAGEMENT

Objective: To introduce the concepts of management, its principles and

familiarise the functions of management.

Unit I 12 hrs

Nature and process of management- meaning and definition of management -

management process – Management as a science, an art or a profession- difference

between administration and management - significance of management; Managerial

functions- brief explanation of various management functions- managerial skills - role of

managers.

Management thought: Classical Theory- Scientific Management - elements-principles

criticisms; Administrative Management- principles of modern management;

Contributions of Peter Drucker.

Unit II 12 hrs

Planning- meaning, definition, features, benefits and limitations of planning- process of

planning - how to make planning effective- types of plans-types/ kinds/ forms of

planning; MBO- process- importance- making MBO effective; Decision Making-

meaning- process- types of decisions.

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Unit III 12 hrs

Organisation-meaning - definition- features- principles of organisation- process-Types

of organisation- line -functional- line & staff - matrix (in brief) - project (in brief)-

committees (in brief) -Organisation chart-meanings & content -Organisation manual-

meanings & content -Authority & power-(concepts only) -Delegation of authority-

principles -Centralisation & Decentralisation -Span of management ; Staffing –

meaning & significance - Process of staffing (in brief) ; Leadership – meaning, qualities

– Styles of leadership;

Unit IV 12 hrs

Motivation - meaning – importance and objectives, Morale and Productivity-

Communication – importance and objectives.

Coordination and Control- Coordination –Meaning- Need - Principles –Control –

Meaning – Process – Control Methods or techniques; Management Audit concept -

SWOT, KAIZEN, TQM, MIS, ISO, Change Management, Knowledge Management

(Meaning only). Emerging Trends

Case Studies.

Total Hours: 48

Books for Reference:

1. Principles and Practice of Management - T.N. CHHABRA

2. Principles and Practice of Management - L.M. PRASAD

3. Principles and Practice of Management - V. S. P. RAO

4. Management: Text and Cases - V. S. P. RAO

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5. Principles of management - KOONTZ & WEIHRICH

6. Principles of Management - K.S. ADIGA

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BLOW- UP SYLLABUS

Unit I 12 hrs

Nature and process of management-

Meaning and definition of management - management process (1/ 5marks ),

Management as a science, an art or a profession (1/ 5marks), basic features of a

profession (1/ 5marks )such as body of knowledge, formal education, representative

organisation, ethical standards, community sanctions and monetary rewards- difference

between administration and management (1/ 5marks) - significance of management (1/

5marks); Managerial functions- brief explanation of various management functions-

managerial skills (conceptual / human / technical) (1/ 5marks) - role of managers(1/

5marks).

Management thought: Classical Theory- Scientific Management – Elements /

Principles (Features) (1/ 5marks / 15 marks), Contributions of F.W. Taylor (Functional

Foremanship) (1/ 5marks)& Criticisms; Administrative Management by Henry Fayol- 14

principles of modern management(1/ 5marks / 15 marks); Contributions of Peter

Drucker ( Decisional Management School) (1/ 5marks)

Unit II 12 hrs

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Planning- meaning, definition, features, benefits and limitations of planning (1/ 5marks

/ 15 marks)- process of planning (15 marks) - how to make planning effective (1/

5marks marks)- types of plans(1/ 5marks / 15 marks)- Standing plans such as

objectives, policies, procedures, methods, rules, strategies- simple meaning/ features &

importance; - single use plans- programmes / schedules / projects / budgets- simple

meaning/ features & importance

MBO - meaning - process- importance(1/ 5marks / 15 marks)- making MBO effective

(1/ 5marks / 8marks ); Decision Making- meaning- process (1/ 8/ 15 marks)- types of

decisions(1/ 5marks).

Unit III 12 hrs

Organisation- Meaning - definition- features- principles of organisation- process (1/

5marks / 15 marks)- distinction between formal & informal organisation(1/ 5marks);

Types of internal organisation- line -functional- line & staff ( meaning/ merits / demerits)

(1/ 5marks / 15 marks)– other types such as matrix / project / committees (in brief-

ONE marks) -Organisation chart-meanings & content (1/ 5marks) -Organisation

manual-meanings & content (1/ 5marks) -Authority & power-(concepts only- ONE

marks) -Delegation of authority-principles (1/ 5marks / 15 marks) -Centralisation &

Decentralisation (meaning / merits & demerits) (1/ 5marks / 15 marks) -Span of

management ( Graicunas’ theory of span of mgt) (1/ 5marks);

Staffing – meaning & significance - Process of staffing- in brief (1/ 5marks) ;

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Leadership – meaning, qualities – Styles of leadership (1/ 5marks / 15 marks);

Unit IV 12 hrs

Motivation - meaning – objectives and importance (1 mark or 5marks) (excluding

theories of motivation), Morale- meaning and relationship between morale &

Productivity (1 mark) - factors affecting morale (1/ 5marks);

Communication –objectives or aims- importance (1/ 5marks);

Coordination and Control- Coordination –Meaning- aims/ objectives - Principles (1/

5marks / 15 marks); –Control – Meaning – Process (1/ 5 / 8 / 15 marks)

Control Methods or techniques (1 / 5 marks)- Traditional ( budgetary control/ standard

costing/ break even analysis/ inventory control/ production planning & control) and

Modern techniques (MBE / financial statement analysis/ MIS/Management Audit/ PERT

& CPM concepts) –

Emerging Trends: SWOT, KAIZEN, TQM, ISO, JIT, Change Management, Knowledge

Management (simple meaning & features only).- (1/ 5marks )

CASE STUDY: 7 MARKS

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CREDIT BASED I SEMESTER BBM DEGREE EXAMINATION

MODEL QUESTION PAPER (NEW SYLLABUS)

NOTE: QUESTION IS COMPLUSORY

TIME: 3HRS MAX.MARKS: 80

SECTION –A (ONE MARK EACH)

1. Answer any ten of the following questions:

a) Explain the principle of equity

b) What do you mean by ‘conceptual skills’?

c) What is ‘management audit’?

d) What is “Management By Objectives”?

e) Define “ organisation”

f) What is “Delegation of Authority”?

g) Give the meaning of ‘ Organisational Chart’

h) What is “motivation”?

i) State any two methods of reducing resistance to change

j) Mention any two control techniques

k) Who is an ‘autocratic leader’?

l) Mention Graicunas formula for span of control.

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SECTION –B (5 MARKS EACH)

Answer any FIVE of the following questions:

2. Describe how Management is both a science and an art.

3. What are the different steps in MBO?

4. Explain the different Leadership Styles

5. Write a short note on “Scientific Management’

6. Explain the process of “Communication”

7. Explain the importance of “ Co-ordination”

8. What are the problems encountered in Line and Staff Organisation?

SECTION –C (15 MARKS EACH)

9. Explain the principal contributions of Henry Fayol in the field of management

Or

“Management is a distinct process consisting of planning, organising, actuating

and controlling performance to determine and accomplish objectives by the use

of people and resources”. In the light of this above definition, explain the meaning

and nature of management.

10. Define and explain the term “Planning”. Discuss the steps in planning process

Or

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Define and explain Decentralisation. How does it differ from delegation of

authority?. Discuss its merits and demerits.

11. a) What is decision making? Explain the steps in Decision – making Process.

............8

b) Case study

...............7

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BBM I SEMESTER

BM 103: ACCOUNTING-I

BLOWN UP SYLLABUS

Objective: To familiarize the students with the fundamentals of Book-Keeping

and Accountancy and to create awareness among the students about the

practical utility of Accounting Concepts and Conventions.

Unit I 12 hrs

Introduction-

1. Origin and Development of Accounting Thought. (One Mark Questions)

2. Book-Keeping-Meaning; (One Mark Questions)

3. Accounting, Accountancy- Meaning, Definition, Features, Need, Objectives and

Functions of Accounting. (One Mark/ Five Marks Questions)

4. Basic Accounting Terms- Meaning. (One Mark Questions)

5. Accounting Equation- Meaning and Equation. (One Mark Questions)

6. Accounting Principles- Meaning and Definition- Classification of Accounting

Principles- Concepts and Conventions-Discussion on various Accounting

Concepts and Conventions. (One Mark / Five Marks Questions)

7. Accounting Standards (Meaning only) (Names of Accounting Standards May be

mentioned for the knowledge of the students). (One Mark Questions only)

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8. Basis of Accounting-Cash System, Mercantile System and Hybrid System-

Meaning and Features only. (One Mark/ Five Marks Questions)

9. Recording of transactions under Double Entry System- Meaning, Features and

Advantages. (One Mark / Five Marks Questions)

10. Various kinds of Accounts-Personal, Real and Nominal-Rule of Debit and

Credit-Examples. (One Mark Questions/ Five Marks Questions requiring

classification of accounts in to three categories)

11. Journal and Journalizing - Meaning, Form and Steps Required-Problems(One

Mark / Five Marks Questions/ 5 Marks Problems/15 Marks Problems)

12. Simple and Compound Entries. (One Mark Questions)

13. Preparation of Ledger Accounts- Meaning, Features, Need and Form, Steps

involved in Preparation of Ledger Account. Posting and Balancing of Ledger

Accounts- Problems (One Mark / Five Marks Questions/ 5 Marks Problems)

14. Recent Developments in Accounting- Computerized Accounting. (One Mark

questions only )

Unit II 12 hrs

15. Subsidiary Books –Meaning, Features, Advantages and Different Subsidiary

Books (One Mark / Five Marks Questions)

16. Purchases Book- Meaning, Invoice- Meaning. Trade Discount- Meaning and

Form of Purchases Book- Problems (One Mark Questions/Five Marks Problems)

17. Sales Book- Meaning, Outward Invoice- Meaning. and Form of Sales Book-

Problems (One mark Questions/Five Marks Problems)

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18. Purchases Returns Book- Meaning, Debit Note- Meaning, Form of Purchases

Returns Book- Problems (One mark Questions/Five Marks Problems)

19. , Sales Returns Book- Meaning, Credit Note- Meaning, Form of Sales Returns

Book. Differences between Debit Note and Credit Note- Problems (One

Mark/Five Marks Questions/Five Marks Problems)

20. Journal Proper- Meaning, Opening Entries, Adjusting Entries, Closing Entries

and Correction Entries- Problems (One Mark Questions)

21. Cash Book- Meaning , Nature, Objectives and types of Cash Book Simple Cash

Book- Meaning and Form of Simple Cash Book-Problems (One Mark

Questions/Five Marks Problems)

22. Three Column Cash Book- Meaning, Contra Entries and Form of Three Column

Cash Book. Cash Discount, Differences between Cash Discount and Trade

Discount- Problems. (One mark Questions / 15 Marks Problems)

23. Petty Cash Book-Meaning, Need Nature, Advantages and Types-Simple Petty

Cash Book(Meaning only), Petty Cash Book under Imprest System-Meaning-

Form, Systems of making payments to the Petty Cashier-Problems. (One mark

Questions / 5 Marks Problems)

24. Bills Receivable Book and Bills Payable Book (Meaning and format

only)(Problems may be worked out for the knowledge of the students) (One

mark Questions)

25. Bank Reconciliation Statement-Meaning-Need and Causes for difference

between Cash Book and Pass Book Balances- i. Preparation of Bank

Reconciliation Statement-When either of the balances or both the balances are

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given. ii. Cash Book and Pass Book entries are given(Preparation of Bank

Reconciliation Statement with Adjusted Cash Book is excluded) -Problems.

(One Mark / Five marks Questions/5 Marks/ 15 Marks Problems)

Unit III 12 hrs

Depreciation Accounting

26. Depreciation-Meaning and Definition-Causes, Nature and Objectives, Factors to

be taken in to account for calculating the amount of Depreciation. (One Mark /

Five marks Questions)

27. Methods of Charging Depreciation (excluding change of methods)-Original Cost

Method-Meaning, Entries-Problems ( Problems requiring preparation of ledger

accounts only may be asked)(One mark Questions / 5 Marks Problems)

28. Written-Down-Value Method-Meaning, Entries-Problems ( Problems requiring

preparation of ledger accounts only may be asked) (One mark Questions/Five

Marks Problems)

29. Annuity Method-Meaning, Entries-Problems ( Problems requiring preparation of

ledger accounts only may be asked) (One mark Questions/Five Marks

Problems)

30. Trial Balance- Meaning, Objectives and Methods of Preparation. Suspense

Account. Form of Trial Balance – Problems. (One mark Questions/ Five marks

Problems)

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31. Errors and their Rectification- Meaning-Types of Errors-Rectification of Errors-

Errors located before the preparation of Trial Balance - Errors located after the

preparation of Trial Balance and before the preparation of Final Accounts-

Suspense Account.-Problems(problems excluding bills transactions)(One mark

Questions/ Five marks Questions/ 5 Marks Problems/ 15 Marks Problems)

Unit IV 12 hrs

32. Preparation of Final Accounts of a Sole Trader-Meaning of Final Accounts -

Trading Account- Meaning, Purpose and Preparation- Profit and Loss Account-

Meaning, Purpose and Preparation.

33. Balance Sheet- Meaning and Preparation-Order of Liquidity and Order of Fixity-

Problems on preparation of Trading & Profit & Loss Account and Balance Sheet.

(One Mark Questions / 15 Marks Problems)

Total Hours: 48

Books for Reference

1. Accounting I - B.S. Raman (United Publishers)

2. Accounting I - K.S.N. Adiga (Shubhadri Books)

3. Introduction to Accounting - Shukla M.C. & T.S. Grewal (S Chand)

4. Principles and Practice of Accountancy - R.L. Gupta (Sultan Chand & Sons)

5. Accountancy - S.K. Paul (New Central Book Agency)

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6. Advanced Accountancy - Maheshwari S.N. (Vikas Publishing House)

7. Financial Accounting - Dr. V.K. Goyal (Excel Books)

8. Financial Accounting -a Managerial Emphasis -Ashok Banerjee (Excel Books)

9. Financial Accounting - Dr. P.C. Tulsian (S Chand)

10. Book-Keeping and Accountancy - Agarwal A.N.

11. Book-Keeping and Accountancy - Sarkar N

Blown-up Syllabus Prepared by:

KRISHNA BHAT,

Associate Professor in commerce,

Govt. First Grade College,

KARKALA-574104.

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Credit Based I Semester BBM Degree Examination

(2012 Scheme)

BM 103: ACCOUNTING-I

Model Question Paper

Notes:

1. Answer all questions

2. Show Working Notes wherever necessary

Section A

(One Mark each)

Answer any Ten of the following questions

1.

a. What is Trial Balance?

b. What is Contra Entry?

c. Give the meaning of Accounting Standards.

d. What is Imprest System of dealing with Petty Cash Book?

e. Give the meaning of “Convention of Conservatism”.

f. What are intangible assets?

g. What is Bad Debt?

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h. Give the meaning of Bank Reconciliation Statement.

i. In which subsidiary book do you record the transfer entries?

j. State two causes of depreciation.

k. Give an example for error of principle.

l. Give the basic accounting equation.

Section-B [5 Marks each]

Answer any FIVE of the following.

2. Define Accounting. Explain in brief the functions of Accounting.

3. Explain any five Accounting Concepts.

4. From the following particulars write an analytical petty cash book on the imprest

system.

2012

Jan 1. Received Rs.50 for petty cash.

3. Spent for postage Rs.4.50.

5. Taxi hire for secretary Rs.5.

10. Ink and stationery Rs.8.50.

11. Sent a telegram Rs.1.00.

15. Entertainment expenses for visitors Rs.6.25..

20. Paid for carriage 8.75.

26. Tips paid to Peon on republic day Rs.5.50.

30. Paid telephone bill Rs.4.

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31. Paid to Y &Co Rs.2.00.

Feb 1. Imprest amount received from the cashier.

5. Enter the following transactions in the purchases book.

2012

June 3 Bought of National Furniture Mart, Mumbai

10 chairs at Rs.30 each

5 tables at Rs.150 each

Delivery and cartage Rs. 50

June 9 Purchased from M/S Chandra & Co New Delhi

10 Steel cabinets at Rs.500

Packing and delivery Rs.150

Less: trade discount

June 15 Purchased from Madras Furniture Company, Madras:

50 folding chairs at Rs.50 each.

June 17 purchased from Leo Furnitures Udupi for cash

3 Divana sets for Rs.10000

5 Drawing table for Rs.10000.

6. A firm purchased a lease for Rs.10000/- to be depreciated over a period of four years

under annuity

system, the rate of interest is 5% per annum. The annuity table shows that the annual

amount

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required to write off Re.1 in four years at 5% per annum is Re.0.282012.

Prepare the lease a/c for four years.

7. Raja the businessman entered in to the following transactions with Ram on the

following dates. Draft

the ledger account of Rama and balance the same.

2012

June 1. Opening debt of Rama to Raja Rs. 5,000.

5. Sold goods to Rama subject to 10% trade discount Rs. 2,000.

7. Goods sold to Rama for cash Rs. 1,000.

10. Rama returned goods Rs. 300.

15. Purchased goods from Rama Rs.1,000 on credit.

20. purchased goods from Rama Rs. 2,000 .

28. Rama paid cash to Raja Rs. 1,000.

8. Rectify the following errors:

1. The total of the sales book is short by Rs.500/-.

2. A sale to Ms. Amitha Rs.2100/- has been entered in the sales book as Rs.

1200/-.

3. A purchase of Rs.150/- made for the proprietor has been entered as the

purchases.

4. A credit sale of Rs.650/- has been posted to credit of Ms. Anuja.

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5. Goods returned to Pallavi & Co. has not been entered in the books

Rs.800/-.

Section-C [15 Marks each]

Answer any THREE of the following.

9. From the following information prepare a three column cash book of Mr.Karthik.

2012

July 1. Opening balance of cash Rs.18,000. Bank Rs.13,000.

3. Purchased goods and paid by cheque Rs.11,000.

4. Cash sales Rs.10,500.

5. Deposited into bank Rs.10,300.

6. Received from Kashyap Rs.10,400. allowed him discount Rs.100.

12. Withdrew by cheque for office use Rs.800.

15. Paid to Kanchana by cheque Rs.10,000 she allowed a discount of Rs.200.

20. Received from Kalinga by cheque Rs.11,000. (in full settlement of his account

Rs.11,050).

21. Endorsed Kalinga’s cheque to Kadambari.

23. Received a cheque from Kinara Rs.8,000 allowed him a discount of Rs.110.

29. Received a cheque (crossed) from Keerthana for Rs.4,000 allowed him discount

of Rs.40.

30. Keerthana’s cheque is dishonoured.

30. Bank charges Rs.100.

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31. Bank allowed interest on deposits Rs.750.

31. Sold goods to Kavya Rs.18,500.

10. From the following particulars prepare a bank Reconciliation statement of Amulya

on 31-12-2011.

Balance as per pass book Rs.10, 300.

1. Cheques issue to Akhileshwari but not presented for payment prior to 31st

Dec 2011,

Rs.5,800.

2. Cheque deposited into bank in Dec but clear in January Rs.7,600.

3. Cheque issue to Ajitha for Rs.600 on 15th Dec has not been entered in the

cash book.

4. Cheque for Rs.1,200 which was deposited into bank on 30th Dec was not

been collected till 5th January.

5. Bank charges for December Rs. 200 was not entered in cash book.

6. A cheque for Rs.1250 sent to bank for collection was returned dishonoured

on 31st December and the fact of dishonour has been entered in the cash

book on 5th January.

7. Discount allowed to Miss.Aradhana, Rs.100 has been enter in the bank

column instead of discount column.

8. Bank had paid LIC premium of Rs.450 which was not recorded in the cash

book.

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9. One of the customers directly deposited into our bank a/c Rs.1,000 for

which no entry was made in the cash book.

10. A cheque issue to Manisha on 20th Dec for Rs.2,000 was not paid by the

bank for valid reasons. It was reported by Manisha on 10th January 2012.

11. One outstanding cheque of Rs.350 was recorded twice in the cash book.

12. A cheque for Rs.500 received from Mr. entered in the cash book was

deposited into bank on 25th Dec but it was sent to the bank on 5th January.

11. From the following Trial Balance prepare a Trading and profit & Loss Account and a

Balance sheet on

31st December 2011.

Trial Balance

Head of Account Debit

Balances

Rs.

Credit

Balances

Rs.

Stock 16000/-

Building 24000/-

Debtors 17000/-

Machinery 10000/-

Drawings 4000/-

Purchases 90000/-

Insurance 1500/-

Trade Expenses 3600/-

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Sales Returns 600/-

Salaries 8200/-

Carriage Inwards 1250/-

Bills Receivable 4500/-

Bad Debts 300/-

Cash 1400/-

Bank Loan 4400/-

Creditors 11600/-

Capital 32000/-

Sales 130000/-

Purchases Return 800/-

Discount Received 400/-

Commission Received 750/-

Provision for Bad Debts 400/-

Bills Payable 2000/-

182350 182350

Adjustments:

1. Closing sock Rs.12000/-.

2. Out standing salaries Rs.800/-.

3. Prepaid Insurance Rs.150/-.

4. Depreciate Building at 2% per annum.

5. make a provision of 5% on debtors for bad debts.

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12. Journalize the following transactions in the books of Thunga Rao.

2012.

July 1. Commenced business with goods Rs.20,000 and cash Rs.50,000.

2. Received cash from Swathi Rs.40,000.

3. Purchased goods from Sarita Store Rs.15,000.

5. Purchased goods from Rama Rao forRs.20,000 and paid cash

Rs.10,000.

7. Sold goods to Lalith Rs.5,000.

8. Sold goods to Krishna Rao Rs.15,000 and received cash from him

Rs.5,000.

10. Lalith returned goods Rs.500.

11. Goods returned to Rama Rao Rs.500.

15. Krishna Rao returned goods Rs.300.

15. Bought furniture from Kavitha Rs.10,000.

18. Purchased a typewriter for office use Rs.5,000.

20. Paid telephone charges Rs.300.

33


QUESTION BANK

ACCOUNTING-I [BM-103]

ACCOUNT

34

UNIT-I

INTRODUCTION TO ACCOUNTING

ONE MARK QUESTIONS

1. Define Accounting.

2. Define Book-keeping.

3. Give any four examples for Real Account.

4. Mention any two differences between Book-keeping and Accounting.

5. Define Accounting Principles.

6. Define Accounting Concepts.

7. What do you mean by Accounting Conventions?

8. What is Journal?

9. Pass a journal entry for the purchase of goods worth Rs 8,000 subject to 6%

trade discount.

10. What is Journalizing?

11. What is Journal Entry?

12. What is narration?

13. Why the journal is called book of original entry?

14. What is ledger?

15. What is posting?

16. State any two important differences between Journal and Ledger.

17. What is Folio?

18. Why the ledger is called book of final entry?

35

19. Pass a journal entry for goods sold for Rs 2,500 subject to 5% trade discount.

20. Give the basic accounting equation.

21. Define Accounting Standards.

22. What is Cash system of accounting?

23. What is Accrual or Mercantile system of accounting?

24. What is Hybrid system of accounting?

25. State any two differences between Cash System of Accounting and Accrual

System of Accounting.

26. What is Single Entry System of Accounting?

27. What is Double-entry system of accounting?

28. Mention any two merits of single entry system of accounting.

29. State any two differences between Single-entry System of Accounting and

Double-entry System of Accounting.

30. Who is called father of Modern Accounting?

31. What is the meaning of business transaction?

32. What is transaction?

33. Why journal is called a book of original entry?

34. What do you mean by Drawings?

35. Who is a Creditor?

36. What do you mean by closing stock?

37. Give the meaning of Personal account.

38. Expand L.F. and give the meaning of L.F.

39. What is compound entry?

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40. State any two differences between Accountancy and Accounting.

41. Give the meaning of Business Entity Concept.

42. What do you understand by Going Concern Concept?

43. Give the meaning of Cost Concept.

44. Name the accounting conventions.

45. What do you mean by Convention of Consistency?

46. Give the meaning of Convention of Conservatism.

47. Mention any two differences between Accounting Concepts and Accounting

Convention.

48. Give the meaning of Balancing of Ledger Account.

49. What is Debit Balance?

50. What is credit balance?

51. Mrs. Amani has cash Rs 25,000, Goods Rs 5,000, Furniture Rs 5,000 and Bank-

overdraft Rs 5,000. Find out her capital.

52. If a capital of a business is Rs 35,000 and liabilities are Rs 20,000, calculate total

assets of the business by accounting equation.

53. Mr. Amar has cash Rs 10,000, Bank balance Rs 8,000 and Machinery Rs 20,000

and Bills Payable Rs 9,000. Find out his capital.

54. Calculate the total assets when capital is Rs 80,000, Creditors Rs 50,000,

Revenue during the period is Rs 60,000 and expenses during the period are Rs

40,000.

55. What do you mean by computerized accounting system?

56. Who is insolvent?

37

FIVE MARKS THEORY QUESTIONS

1. Define Accounting. Explain in brief the functions of Accounting.

2. Define Accounting. State the objectives of Accounting.

3. Explain the different Accounting Conventions.

4. Explain the different bases of accounting with suitable examples.

5. What do you mean by Single Entry System of Accounting? State its features.

6. What do you mean by Double Entry System of Accounting? State its features.

7. Distinguish between Single Entry System and Double Entry System of

Accounting.

8. Distinguish between journal and ledger.

9. Write a note on:

i. Business Entity Concept

ii. Going Concern Concept

iii. Cost Concept

iv. Dual Aspect Concept

10. Explain in brief any five Accounting Concept.

UNIT-II

SUBSIDIARY BOOKS & BANK RECONCILIATION

STATEMENT

ONE MARK QUESTIONS

38

1. What is cash book?

2. What is the nature of Cash book?

3. Write any two objectives of Cash Book.

4. What do you mean by subsidiary book?

5. What is the other name of Subsidiary Books?

6. Name the basic document for an entry in the following books:

i. Purchases

ii. Sales Returns

7. In which subsidiary book do you record the transfer entries?

8. What is a journal proper?

9. In which subsidiary books of a trader following items are recorded?

i. Interest on capital

ii. Withdrawal for office use

10. Give the meaning of cash discount.

11. What is Debit Note?

12. What is Credit Note?

13. Mention two differences between Debit Note and Credit Note.

14. What is an invoice?

15. What is meant by an Inward Invoice?

16. What is meant by Outward Invoice?

17. What is Three-column cash book?

18. What is an Analytical Petty Cash Book?

19. What is imprest system of petty cash book?

39

20. What is “Replenishing the imprest amount” under Petty Cash Book?

21. Give the meaning of Bills Receivable Book.

22. Give the meaning of Bills Payable Book.

23. Give the meaning of Bank Reconciliation Statement.

24. State any two causes for differences between cash book and pass book

balances.

25. Which balance does the bank overdraft account show in your books?

26. State the objective of preparing BRS.

27. What do you mean by Pass Book? When it is issued?

28. What is Cash Discount?

29. What is Trade Discount?

30. State any two differences between Cash Discount and Trade Discount.


1. What do mean by Subsidiary Books? State any four features of Subsidiary

Books.

2. Distinguish between Debit Note and Credit Note.

3. Distinguish between Cash Discount and Trade Discount.

4. What is Bank Reconciliation Statement? State any four important causes for

difference between Cash Book and Pass Book balances.

5. What are the causes for differences between Cash Book and Pass Book

balances?

6. What is meant by Bank Reconciliation Statement? State any four features of

BRS.

40

UNIT- III

DEPRECIATION ACCOUNTING, TRIAL BALANCE & RECTIFICATION OF

ERRORS

ONE MARK QUESTIONS

1. Define Depreciation.

2. State any two causes of depreciation.

3. What do you mean by wasting assets? Give an example

4. What is Straight Line Method of depreciation?

5. How do you calculate depreciation under Straight Line Method?

6. State any two merits of Straight Line Method of Depreciation.

7. What is WDV Method of depreciation?

8. Mention any two important differences between SLM & WDV method of

depreciation.

9. What is trial balance?

10. Mention any two objectives of preparing Trial Balance.

11. What are the methods of preparing the trial balance?

12. What is two sided error?

13. Give two examples of errors of commission.

14. What do you mean by an error?

15. What is rectification of errors?

16. State any two objectives of rectification of errors.

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17. Name the different classes of errors on the basis of their nature.

18. What is meant by an error of omission?

19. Give any two examples to error of omission.

20. Give the meaning of error of commission.

21. Give any two examples to error of commission.

22. What is an error of principle?

23. Give two examples to an error of principle.

24. What is meant by compensating error?

25. What is one sided error?

26. Give two examples to errors which do not affect on agreement of trial balance.

27. Define Suspense Account.

28. Mention the two objectives of Suspense Account.


1. Define Depreciation. Explain the causes for charging depreciation.

2. What are the objectives of charging depreciation?

3. Describe the classification of errors on the basis of nature.

4. What is meant by an error? Explain the different types of errors.

5. What is meant by Suspense Account? State any four objectives of preparing

Suspense Account.

6. Distinguish between Straight Line Method of depreciation and Written Down

Value Method of depreciation.

42

UNIT-IV

FINAL ACCOUNTS OF SOLE TRADERS

ONE MARK QUESTIONS

1. Where will you show the following items in the balance sheet of a sole trader?

i. P/L Account debit balance.

ii. Gift received from uncle.

2. Mrs. Amani has cash Rs 25,000, Goods Rs 5,000, Furniture Rs 5,000 and Bank

Overdraft Rs 5,000. Find out her capital.

3. What do you mean by Marshalling of Balance Sheet?

4. Name the methods of arranging assets and liabilities in the balance sheet.

5. What are the components of final accounts?

6. What is Trading Account?

7. What is Gross Profit?

8. What is Gross Loss?

9. What is Net Profit? How do you treat the net profit in the final accounts of sole

traders?

10. What is Net Loss? How do you treat net loss in the final accounts of sole traders?

11. Define Balance Sheet.

12. What are Current Assets? Give two examples.

13. What are Fictitious Assets? Give an example.

14. State any two differences between Gross Profit and Net Profit.

15. State any two differences between Trading Account and Profit & Loss Account.

43

16. Bring out two differences between trial balance and balance sheet.

17. What do you mean by outstanding expenses?

18. What are intangible assets?

19. What do you mean by tangible assets?

20. What do you mean by Bad debts?

21. What are adjusting entries?

22. Give the components of cost of goods sold.

23. Give the meaning of Book Debt.

24. How do you deal with goods personally used by the proprietor in preparing the

final accounts?

25. How do you deal with goods destroyed by fire in preparing final account?

26. How do you treat the Bad debts appearing in the adjustment in the preparation of

final accounts?

27. How would you treat ‘Free Samples distributed’ in final accounts?

28. Find out the cost of goods sold from the following particulars:

Op. Stock Rs 10,000, Purchases Rs 1,00,000, Purchases returns Rs 1,000,

Wages Rs 10,000, Freight inwards Rs 5,000, Cl. Stock Rs 15,000.

29. How do you treat the following items in the Balance sheet of a Sole Trader?

i. Interest on Capital

ii. Prepaid Insurance

30. Find out the cost of goods sold from the following particulars:

Op. Stock Rs 10,000, Purchases Rs 1,00,000, Purchase Returns Rs 1,000,

Wages Rs 10,000, Freight inwards Rs 5,000, Cl. Stock Rs 15,000.

44


NIL

Prepared by:

1. Ramesh M, M.Com., M.Phil, PGDHRM, DEM

Lecturer, Dept. of Commerce & Mgmt.

Dr. N.S.A.M. FGC, Nitte-574110.

45

I SEM BBM

BM 104: BUSINESS ORGANISATION

BLOWN UP SYLLABUS

Unit I 12 hrs

Nature - Scope and Forms of Business, Meaning, Nature scope objectives,

essentials of successful business; Forms: Sole proprietorship: Definitions, Features,

Merits and Demerits.

Partnership: Definitions, Features, Merits and Demerits, Joint Stock Company:

Definitions, Features, Merits and Demerits, Co-operatives: Definitions, Features,

Merits and Demerits; Public Enterprises: Departmental Undertaking: Definitions,

Features, Merits and Demerits Public Corporations: Definitions, Features, Merits and

Demerits Government Companies: Definitions, Features, Merits and Demerits

Unit II 12 hrs

Business Combinations-Meaning Definitions, Causes, Types, Forms – Simple

Combinations, Compound combinations : Simple associations : Trade associations,

Chamber of commerce, Informal agreement – Federations : Pools - Meaning ,

Features, Types, Merits and demerits; - Cartels : Meaning, objectives, types, merits

and demerits – Consolidations : Partial consolidations – Trusts Community of Interest

Holding companies – Complete consolidations : Amalgamations and mergers- Merits

and demerits of Business Combinations, Recent Trends in Business Combinations

46

Unit III 12 hrs

Sources of Business Finance -Types of Business Finance: Long, Medium and

Short Term;

Sources of Corporate Finance: Issue of Shares: Equity Shares – Features, Merits

and Demerits, Preference Shares: Features, Types, Merits and Demerits.

Debentures: Features, Types, Merits and Demerits. Shares Vs Debentures - Public

Deposits : Features, Merits and Demerits - Retained Earnings : Features, Merits and

Demerits, Institutional Financing (IDBI, IFCI, ICICI, SFC), Objectives, Functions and

forms of assistance; Sources of Short Term Finance: Trade Credit, Bank Credit –

Types, Inter Company Loans, Lease Finance, Accounts Receivable, Financing

Customer Advances.

Unit IV 12 hrs

Elements of Insurance - Meaning, Significance: to the individuals, to the business

people and to the society (Refer Principles and practice of Insurance by M.N.Mishra).

Principles, Types- Life Insurance: Terms and Conditions, Types of life policies -Fire

Insurance: Features and Proceedings for Claim, Marine Insurance: Features, Types,

Clauses, Warranties and Marine Losses, Miscellaneous Types of Insurances and

Recent Changes and Development in Insurance Sector.

Total Hours: 48

Books for Reference:

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1. S. A. Sherekar - Business Organization

2. C. B. Guptha - Business Organisation and Management

3. M. C. Shukla - Business Organisation

4. Dr. S. C. Saxena - Business Administration

5. M.N.Mishra - Principles and practice of Insurance.

‘

48

I SEM BBM

BM 104 BUSINESS ORGANISATION

Expected questions Areas

15 Marks Questions:

UNIT 1

1. Nature scope and objectives of business

2. Joint Stock Company: Definition and features.

3. Merits and Demerits of Joint Stock Companies

4. Cooperatives: Features. Merits and Demerits.

5. Public corporations Features, Merits and Demerits

UNIT II

1. Causes of business combinations.

2. Merits and demerits of business combinations.

3. Pools and Cartels – Types. Merits and Demerits.

UNIT III

1. Sources of Corporate finance (Mention any Three)

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2. Institutional Financing (Mention any Three)

3. Sources of short Term Finance.

UNIT IV

1. Meaning and Significance of Insurance.

2. Principles of Insurance.

3. Types of Insurance.

05 Marks Question Areas.

UNIT I

1. Partnership Features / Merits and Demerits

2. Departmental Undertaking Features / Merits and Demerits

3. Government Companies Features / Merits and Demerits

UNIT II

1. Types of Combinations

2. A note on Trade Associations

3. A note on Chamber of commerce.

4. Pools Vs. Cartels

5. A note on Informal agreements.

6. Partial Consolidations.

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UNIT III

1. Institutional Financing (Note Any one)

2. Note one any one source of Corporate Finance.

UNIT IV

1. Importance of insurance.

2. Types of Life Policies

3. Note on Marine Insurance

ONE MARK’S QUESTION (from any corner)

MANGALORE UNIVERSITY BBM - I SEMESTER BM 101: … · 1 MANGALORE UNIVERSITY BBM - I SEMESTER BM...

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